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The food, energy and financial crisis is pushing more people into extreme poverty and hunger. Even before the pandemic and the war in Ukraine, the world was not on track to end hunger and malnutrition by 2030. In the lead up to FAO’s first ever Hand-in-Hand investment Forum, FAO Investment Centre Director Mohamed Manssouri spoke about these challenges and the importance of investing in sustainable agrifood systems.  

Question: The latest figures from the State of Food Security and Nutrition report show that the number of hungry people rose by 150 million since the start of the pandemic to 828 million. How can we rethink agriculture to improve global food security and achieve the other Sustainable Development Goals?

Manssouri: First, we need to look at agrifood systems as a whole – from primary production and processing to consumption and waste. And we need a longer-term vision. That means finding the right combination of policies, innovations and public and private investment that promote inclusive economic growth through good jobs, especially for young people; better nutrition and health; the sustainable management of natural resources; greater equity; and climate resilience. 

The world’s agrifood systems are being hit by multiple shocks – conflict, drought, floods, public health crises – often at the same time. These shocks are becoming the new normal. We need to be better prepared to manage all these risks. We are working closely with countries and partners to find investment and finance solutions for more sustainable and resilient agrifood systems that can deliver on what we call the four betters: better production, better nutrition, a better environment and a better life for all.

Question: What are some priority areas for investment that can accelerate the transformation of agrifood systems?

Manssouri: The pandemic and the war in Ukraine have exposed the vulnerabilities in our agrifood systems to supply chain disruptions, trade policies, the concentration of market power for key commodities and inputs.

Agrifood systems need to strike a better balance between the global and the local, looking at issues such as economies of scale, diversification, transaction costs and carbon footprints.

We’re starting to hear calls for ‘de-globalization’, as governments and businesses reassess the risks of exposure to the current trade system. But rather than de-globalizing or looking inwards, I think we need to work towards being smarter locally and globally. We need to promote competitive and sustainable local production, regional trade arrangements, strategic and effective ‘stock management’, and diversified food sources and trade partners. Many countries will continue to rely heavily on imports to feed their people. But when they import from different trade partners as opposed to one or two, they will be less vulnerable to shocks.

Given that the investments made today shape the impacts of tomorrow, we need to find the right entry points to positively transform agrifood systems, working across sectors with the same vision and commitment. That means, for example, investing in One Health across the agriculture, health and environment sectors, and in One Water across the agriculture, health, water supply and sanitation, infrastructure, climate resilience sectors, and so on.

We also need to invest in developing capacities across agrifood systems, including empowering and educating consumers to make healthy and more environmentally sustainable food choices – and to waste less. Consumers are major decision-makers in agrifood systems, yet they usually have little say in how the systems work in terms of production, transportation, trade.

I also see important investment opportunities around transforming food distribution networks, including to feed the rural and urban poor, for example, and strengthening governance to ensure that people have access to safe, healthy, nutritious and affordable food wherever they live.

Agrifood systems will become increasingly digitized in the coming years. Digital technologies have the power to help smallholders improve production and productivity, access markets and finance and protect crops. They can also help food distribution networks reduce food loss and waste and improve food safety. But we need to be mindful of the potential digital divide so that people, sectors and economies are not inadvertently left behind. That calls for conducive regulatory and incentive frameworks and enabling conditions such as digital literacy, rural connectivity and data governance.

And of course, we urgently need to decarbonize our agrifood systems, which currently emit far more greenhouse gases than they capture and store. That means promoting low carbon pathways and introducing a wider range of drought tolerant, nutritious and less water intensive staple crops. This, in turn, can have knock-on effects across the SDGs – empowering women, improving nutrition, promoting the better management of natural resources and reducing pollution. Another interesting area are voluntary carbon markets, which can drive private sector action on climate change.

Question: How can sustainable public and private finance be part of the solution?

Manssouri: We know that public funding alone is not enough for countries to fulfil their SDG and national commitments by 2030. Attracting greater and more responsible private agrifood investment is vital.

In recent years, public and private investors have launched blended funds and facilities to finance – via debt or equity – private sector projects that deliver sustainable development impacts while also providing a positive return on investment.

The agrifood sector is marked by uncertainty and volatility. Our primary role as the FAO Investment Centre is to help de-risk investment, whether public or private, through sound information, analysis and expertise.

Linking our policy support with investment is how we can achieve impact at scale, but to transform agrifood systems, we need to understand them in all their different dimensions. FAO’s Hand-in-Hand initiative and the analysis gleaned from the large-scale food systems assessments carried out in over 50 countries last year provide a valuable base for policy and investments. We also need to have a better understanding of how agrifood systems are financed. This will enable countries, financing institutions and the private sector to make the right investments, promote the right policies and develop the right financial solutions like blended finance, fintechs and risk management instruments that can really make a difference.

FAO’s Hand-in-Hand Investment Forum, focusing on 20 countries and three regional initiatives, will be an excellent opportunity to help governments engage and build partnerships with multilateral development banks, donors and investors, and rally support for their agricultural strategies and investment plans.

Find out more about FAO’s Hand-in-Hand Investment Forum, 18 and 19 October 2022